VA sees wave of claims as judge reopens back pay lawsuit

Thousands of VA employees could join the back pay case – find out what triggered the sudden opening

VA sees wave of claims as judge reopens back pay lawsuit

A federal judge has reopened a class action for Department of Veterans Affairs (VA) employees seeking back pay, expanding the group eligible to join as of November 5, 2025. 

A recent order from the United States Court of Federal Claims has given thousands of current and former VA employees another opportunity to join a class action lawsuit over alleged unpaid wages. The case, brought by Danuta Ysla, Henrietta Hargress Davis, Gloriyadi Echevarria, Arlene Frances Hobbs, Tierra L. Kelly, and Julia M. Muldrow on behalf of themselves and others similarly situated, alleges that the VA failed to provide proper compensation. 

The court’s latest decision addresses a significant procedural issue: 7,058 potential class members never received their initial notices because the mail was returned as undeliverable. To address this, the plaintiffs moved to reopen the notice and opt-in period for these individuals, allowing the class administrator to search for updated addresses and resend notices. The government did not object to this approach, and the court found good cause to allow these employees another chance to participate. 

The order also considered the status of 468 individuals who submitted their opt-in forms after the August 6, 2025 deadline. The plaintiffs argued these late submissions should be included in the class, while the government maintained they were untimely but did not claim any prejudice or burden from their inclusion. The court noted that all late forms were received within one month of the deadline and that the government had already identified these individuals as eligible under the class certification order. With no evidence of undue prejudice, the court decided to allow the late opt-ins, noting that this would only increase the class size by about 3.7 percent. 

The revised schedule sets a new opt-in deadline of December 22, 2025. Class counsel must provide a list of putative opt-ins by January 16, 2026, and discovery regarding amounts owed to each class member is to be completed by February 23, 2026. The parties are scheduled to file a joint status report on March 16, 2026, proposing how the case should proceed. 

This case remains ongoing, with the final determination of liability and damages yet to be made. 

For HR professionals, the developments underscore the importance of reliable communication and record-keeping in large organizations, especially when dealing with wage and hour claims. The court’s handling of undelivered notices and late opt-ins also highlights the complexities that can arise in large-scale employment litigation and the need for flexible, fair procedures to ensure all affected employees are properly notified and included. As the case progresses, it may offer valuable lessons for HR leaders managing similar issues in their own organizations. 

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